Varoufakis and Shedlock on Europe’s ‘triumph of wishful thinking over reality’

For years, European banks have run operations on much thinner capital requirements than their American counterparts. And with new US financial regulatory rules set to kick in soon European banks are looking for ways to skirt the new laws. Banks are considering buying their subsidiaries’ debt, selling assets, or moving into offshore legal structures outside the US. Erin Ade reports. Then, Mike ‘Mish’ Shedlock, of the blog MISH'S Global Economic Trend Analysis, talks about what’s happening in Europe. Yanis Varoufakis, professor of Political Economy at the University of Texas, gives his view about an apparent European recovery. In Big Deal, Erin and Edward Harrison discuss the return of foreign investment to Portugal and the improvement in its housing market. Can Portugal leave its bailout program free and clear?